Money lending establishments near or on Center Point Parkway. From I-59 to the city limits of Center Point in Birmingham. The Birmingham City Council extended its moratorium on new payday loan, check cashing and title pawn businesses inside the city because city leaders say there are too many. (Birmingham News FILE)

BIRMINGHAM, Alabama -- Birmingham's moratorium on payday loan, cash advance and title loan companies is extended another six months as city officials continue to find legal options to limit that industry's growth.

The expanded moratorium runs until Dec. 19. By then, councilmembers said they plan to have new zoning rules and seek state legislation to discourage the growth of the alternative financial industry, which council members call a blight.

On the other side, payday lending officials maintain their business is unfairly mischaracterized and call the city's action extreme and anti-business.

The latest extension was a proposal from the council's Planning and Zoning Committee.

"Probably the biggest issue is the fact that we really need assistance from the legislature in order to make a real impact, but zoning is sort of a BAND-AID," said Councilwoman Abbott, zoning committee chairwoman. "We determined that an additional six months would give us time to look into a couple of suggestions and deal with members of the legislature to come up with a plan for the next legislative term."

Councilwoman Lashunda Scales proposed and lobbied for months for the original moratorium. She said the city was inundated with the businesses that stifle positive commercial development.

Councilwoman Lashunda Scales

"It is very important that we get the payday lending moratorium correct due to the proliferation that has directly impacted our neighborhoods in ways that have cost local neighborhoods growth and economic development," Scales said this afternoon. "At this point, we need to continue to work with state and federal government so we can better protect the citizens that trust us to advocate on their behalf."

Payday lending industry officials, and their trade group, Borrow Smart, have consistently defended their business, saying they provide a necessary service that is unfairly vilified.

"Since initially passing this moratorium in 2011 the council members have shown no indication that they are truly committed to studying this issue or engaging in open dialogue about potential solutions," said Borrow Smart President Max Wood. "Rather, they seem intent on extending what should be a temporary moratorium indefinitely in disregard for state laws and the rights of small business owners.This moratorium is anti-business and anti-consumer. It limits healthy market competition and drives up the cost of doing business."

Still, Scales remains a strong critic of the industry, accusing them of preying on vulnerable residents and locking them into a cycle of debt. Both she and Abbott have said too many of the businesses clustered together discourage other businesses from locating in the commercial areas.

Scales said 93 payday lending businesses in Birmingham is more than enough.